US-India Trade Agreement: Trump Cuts Tariffs to 18% Following PM Modi Discussion

Trump Announces Trade Deal With India, Cuts Tariffs to 18% After Call With PM Modi

U.S. President Donald Trump on Monday announced a new trade deal with India, reducing reciprocal tariffs on Indian goods from 25 per cent to 18 per cent, following a phone call with Prime Minister Narendra Modi. The move marks a thaw in U.S.-India trade relations after months of high tariffs.

PM Modi welcomed the decision, tweeting, “Big thanks to President Trump on behalf of the 1.4 billion people of India. Made in India products will now attract a reduced tariff of 18 per cent.”

The agreement also includes the removal of a separate 25 per cent tariff previously imposed on India’s purchases of Russian oil, after New Delhi agreed to halt such imports.

Trump described the deal as a gesture of “friendship and respect,” noting that India would also reduce non-tariff barriers on U.S. goods. He highlighted cooperation on energy, technology, agriculture, and other sectors, saying Modi has committed to buying more than $500 billion of U.S. products.

U.S. envoy to India, Sergio Gor, called the announcement a “successful outcome,” noting that formalities and paperwork would be completed in the coming days.

The trade deal is being seen as a major diplomatic and economic breakthrough, with expectations of boosting bilateral trade and benefiting Indian exporters.